ASX: LVH MARKET RELEASE LiveHire September Quarterly ... · 10/24/2019 · LiveHire is an award-winning2 talent acquisition & engagement platform that revolutionises the candidate

ASX: LVH MARKET RELEASE

LiveHire September Quarterly Report and Appendix 4C 24 October 2019 | Melbourne, Victoria Talent acquisition and engagement platform LiveHire Limited (ASX: LVH) (“LiveHire” or the “Company”) today released its Quarterly Report and Cash Flow Report for the period ending 30 September 2019. Highlights for the Quarter: ● Annualised Recurring Revenue (ARR)1 was $2.7m, an increase of 65% YoY (7% QoQ), driven by 10 new

customers (net 7 after churn).

● 86 customers, an increase of 46% YoY (9% QoQ), resulting in Annualised Recurring Revenue Per Client

(ARRPC) of $31,582.

● 12-month trailing cash receipts rose to $3.5m, representing 58% YoY growth. Quarterly cash receipts were

$1m (61% QoQ growth from June cash receipts of $624,000)

● The increased activity of the Direct Sales team is successfully translating into revenue growth, delivering

$387,000 in Total Annual Contract Value ($314,000 ARR plus $73,000 non-recurring) in the quarter.

● Continued execution of channel partner strategy, entering into seven partnerships during the quarter,

bringing total partners to 13. These partners are building pipelines now.

● Advanced discussions with new MSP partners in the US to execute on the US expansion strategy.

● Talent Community Connections (TCCs) grew to 1.38m (24% QoQ). TCCs have grown 90% YoY.

● Significant step-change in expanding the capability and functionality of the LiveHire platform, with the

successful launch of four new major product modules.

● The Company is very well-capitalised with $30.3m cash at bank as at 30 September 2019.

● Board strengthened with the appointment of Michael Rennie as Executive Chairman and Reina Nicholls as

an independent non-executive director.

1 Annualised Recurring Revenue or ARR represents Monthly Recurring Revenue at any point in time, multiplied by 12. It provides a 12-month forward view of recurring revenue at a point in time.

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Key business metrics

Channel Partnership Strategy Strategic channel partnerships enable LiveHire to achieve scale at speed through one-to-many client relationships. Channel partners refer or sell the LiveHire technology as an annual license to their clients. LiveHire delivers the technology, receives payment for the annual license and recognises the Annual Recurring Revenue. Partnerships facilitate a less capital-intensive approach to expanding across Australia as well as into new markets such as the United States. LiveHire’s channel partnership strategy continued to expand during the quarter, with seven new agreements signed: ● US-based Cognitus Consulting, a leading SAP SuccessFactors systems implementer with over 500

consultants.

● Proactive Talent, a US-based recruitment advisory firm that provides holistic strategic advisory services to

enable clients to build a powerful recruiting engine.

● Bayard, a US-based firm providing recruitment advisory services in 17 countries from 15 office locations.

● Extension of Memorandum of Understanding with Deloitte.

Cash receipts – 12-month trailing

LiveHire charges the annual recurring fee upfront.

ARR

Annual Recurring Revenue. LiveHire charges an annual, recurring licence fee to companies for use of the cloud-based platform, based on the size of their workforce (FTE).

Customers Continued customer growth

TCC Ecosystem

Candidates can join multiple Talent Communities with their unified profile, creating a highly valuable and defendable global network effect.

Up 58% Sep 18 to Sep 19




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● Discovery Consulting, a certified SAP Gold Partner that manages and supports over 80 SAP enterprise

customers in Australia.

● HR Consulting Melbourne, a mid-market recruitment consulting firm in Australia.

● Strategic Talent Solutions, a boutique consulting firm with expertise in talent identification, development

and engagement in Australia.

In addition to the aforementioned new partnerships, LiveHire also strengthened their partnership with ManpowerGroup Australia via the signing of a formalised MSA. ManpowerGroup Australia are a leading provider of contingent and permanent recruitment workforce solutions. LiveHire continues to support existing channel partners in building out their pipelines of well-fitted clients to be introduced to LiveHire technology. LiveHire also continues to progress discussions with a large number of potential strategic partners, including systems implementers, in both Australia and the United States. LiveHire is well advanced with discussions with new MSP partners in the United States as the Company seeks to execute on its US expansion strategy.

LiveHire’s total number of channel partners is now 13, of which four are generating revenue for the Company

and nine are in pipeline building phase.

Definitions of channel partner categories can be found in the Appendix. Client wins LiveHire achieved 10 client wins for the quarter across a range of industries, all of which came from the Direct Sales team who carried their strong momentum from the June quarter into the September quarter. The new client wins include an enterprise agreement with a large State Department, an employer of approximately 10,000 people. This enterprise agreement includes an Internal Mobility solution to improve visibility, data quality and mobility of the 10,000 employees. The Direct Sales team continues to build a strong pipeline, and the direct sales channel remains a key pillar of LiveHire’s growth strategy. LiveHire CEO, Christy Forest, said: “During the quarter we achieved an increase of 65% Annualised Recurring Revenue compared to the same period last year. As has been our articulated plan for growth, the direct sales team has been established and is producing consistent results whilst we secure partner agreements that are expected to contribute to revenue growth in the second half of this financial year. “Our Direct Sales team carried the strong momentum from the June quarter into the 2020 financial year. The enterprise agreement signed with a major state government is a direct result of the intensified focus on direct

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sales and is a strong endorsement of our capability to deliver best-in-breed solutions to larger and more complex enterprises, including the placement of both internal and external talent. “In the United States, we have received significant interest, with three of the seven new partner agreements for the quarter via the US. We also continue to progress advanced discussions with several MSP partners as we execute our US market expansion strategy. “We are delighted to be working with seven new best-in-class partners, who are well placed to capitalise on the growing market appetite for our cloud-based solution as we accelerate towards our next phase of growth. These strategic partnerships convey the success of LiveHire’s implementation of a go-to-market strategy designed for scale and growth. “We are committed to generating returns for our shareholders and we are very pleased with the progress made during the quarter that demonstrates the validity of our continued focus on our three-pillar growth strategy – US entry, channel partner expansion and direct sales. This strategy is delivering a foundation for sustained long-term revenue growth.” Board and Governance LiveHire has an active and ongoing board renewal and succession planning process to ensure that it has the right experience and skills mix to support the Company in its strategy. During the quarter, Michael Rennie was appointed Executive Chairman following the retirement of inaugural Chairman Geoff Morgan. In addition, Reina Nicholls was appointed as an independent non-executive director. The Board is committed to ensuring the Board comprises a majority of non-executive directors in keeping with best practice and the ASX Corporate Governance Council recommendations on board composition. A comprehensive search for additional non-executive directors with the appropriate capabilities to make a meaningful contribution to the LiveHire Board is currently underway and these appointments will be made as soon as practicable. Cash Receipts 12-month trailing cash receipts rose to $3.5m, representing 58% YoY growth. Quarterly cash receipts for the quarter were $1,000,000 (61% growth on prior quarter). Operating cash outflow of $4.9m was in line with the estimated cash outflows provided in the June Quarterly 4C report. The cash balance as the end of the quarter was $30.3m, with no debt. Moving forward, the Company will continue to judiciously manage expenditure, with incremental spend expected in the United States and through partner commissions. Expenditure for Q2 is expected to be in line with Q1.

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Note to market None of the information included in this announcement should be considered individually material, unless specifically stated. All figures in this announcement are provided on an unaudited basis. For more information: John Hurst - Investor Relations [email protected] +61 418 708 663 Subscribe to LiveHire’s newsletter at: http://eepurl.com/b2EMFL www.livehire.com/investor About LiveHire LiveHire is an award-winning2 talent acquisition & engagement platform that revolutionises the candidate experience and enables businesses to thrive with talent on demand. Our Talent Acquisition & Engagement platform delivers a proactive sourcing and talent mobility solution called Live Talent Communities. The platform makes managing the flow of talent into and through businesses seamless, delivering value through detailed visibility of talent, shifting recruitment from reactive to proactive, improving fit, reducing time and cost to hire, with an unrivalled candidate experience. Founded in 2011, LiveHire is an Australian company headquartered in Melbourne, with offices also in Sydney and Perth.

www.livehire.com LiveHire’s purpose and investment proposition

2 https://drivenxdesign.com/SYD17/winners_list.asp

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Appendix

LiveHire growth strategy and recent progress

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Channel Partnership Strategy – Glossary LiveHire’s partnerships generally fall into two major categories:

1. Outsourced Provider Partner: A company which provides an outsourced talent acquisition service to multiple client companies and enters into itself, or its client enters into a contract with LiveHire for the purpose of using LiveHire’s technology for that client. While there is no obligation on an outsourced provider partner to promote LiveHire, once an outsourced provider partner contracts the LiveHire technology into more than one client, LiveHire classifies them as a partner. The types of outsourced provider partners are:

• RPO - Recruitment Process Outsourcing Providers, managing permanent hires on behalf of organisations.

• MSP - Managed Service Providers, managing contingent (contractor) hires on behalf of organisations.

2. Reseller and Referral Partner: A company which contracts with LiveHire to refer and/or resell the LiveHire product into its client base. In such situations, LiveHire will pay a sales commission to the reseller/referrer partner. The types of reseller/referrer partners are:

• SI – Technology System Implementers who sell and implement enterprise management software, e.g. Human Resource Information Systems (HRIS), with which LiveHire integrates.

• Talent Acquisition Boutique Consultancies • Recruitment Advertising Agencies

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LiveHire Talent Community results

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Disclaimer This announcement contains “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”, “intend”, “estimate”, and “expect”. Statements which are not based on historic or current facts may by forward-looking statements. Forward-looking statements are based on: - assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and - current views, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties. Actual results, performance or achievements of the Company could be materially different from those expressed in, or implied by, these forward-looking statements. The forward-looking statements contained within the presentations are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this announcement should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statements to reflect any change in the Company’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements.

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+ See chapter 19 for defined terms 1 September 2016 Page 1

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

LiveHire Limited

ABN Quarter ended (“current quarter”)

59 153 266 605 30th September 2019

Consolidated statement of cash flows Current quarter $A’000

Year to date (3 months) $A’000

1. Cash flows from operating activities 1,003 1,003 1.1 Receipts from customers

1.2 Payments for

(a) research and development

(b) product manufacturing and operating costs

(c) advertising and marketing (181) (181)

(d) leased assets

(e) staff costs (3,158) (3,158)

(f) administration and corporate costs (1,568) (1,568)

1.3 Dividends received (see note 3)

1.4 Interest received 162 162

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Government grants and tax incentives

1.8 Other (provide details if material)

1.9 Net cash from / (used in) operating activities

(3,741) (3,741)

2. Cash flows from investing activities

(15) (15)

2.1 Payments to acquire:

(a) property, plant and equipment

(b) businesses (see item 10)

(c) investments

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(d) intellectual property

(e) other non-current assets

2.2 Proceeds from disposal of:

1 1 (a) property, plant and equipment

(b) businesses (see item 10)

(c) investments

(d) intellectual property

(e) other non-current assets

2.3 Cash flows from loans to other entities

2.4 Dividends received (see note 3)


2.6 Net cash from / (used in) investing activities

(14) (14)

3. Cash flows from financing activities 53 53 3.1 Proceeds from issues of shares

3.2 Proceeds from issue of convertible notes

3.3 Proceeds from exercise of share options

3.4 Transaction costs related to issues of shares, convertible notes or options

3.5 Proceeds from borrowings

3.6 Repayment of borrowings

3.7 Transaction costs related to loans and borrowings

3.8 Dividends paid

3.9 Other - IPO / Capital Raising Transaction Costs

3.10 Net cash from / (used in) financing activities

53 53

4. Net increase / (decrease) in cash and cash equivalents for the period

34,013 34,013 4.1 Cash and cash equivalents at beginning of

quarter/year to date

4.2 Net cash from / (used in) operating activities (item 1.9 above)

(3,741) (3,741)

4.3 Net cash from / (used in) investing activities (item 2.6 above)

(14) (14)

4.4 Net cash from / (used in) financing activities (item 3.10 above)

53 53

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4.5 Effect of movement in exchange rates on cash held

4.6 Cash and cash equivalents at end of quarter

30,310 30,310

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter $A’000

Previous quarter $A’000

5.1 Bank balances 7,610 4,352

5.2 Call deposits 22,700 29,662

5.3 Bank overdrafts

5.4 Other – Deposits for Bank Guarantees

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

30,310 34,013

6. Payments to directors of the entity and their associates Current quarter $A'000

6.1 Aggregate amount of payments to these parties included in item 1.2 243

6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payment of Directors salaries, superannuation and fees.

7. Payments to related entities of the entity and their associates

Current quarter $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2

7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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8. Financing facilities available Add notes as necessary for an understanding of the position

Total facility amount at quarter end

$A’000

Amount drawn at quarter end

$A’000

8.1 Loan facilities

8.2 Credit standby arrangements

8.3 Other (please specify)

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter $A’000

9.1 Research and development

9.2 Product manufacturing and operating costs

9.3 Advertising and marketing (195)

9.4 Leased assets

9.5 Staff costs (3,400)

9.6 Administration and corporate costs (1,400)


9.8 Total estimated cash outflows (4,995)

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)

Acquisitions Disposals

10.1 Name of entity

10.2 Place of incorporation or registration

10.3 Consideration for acquisition or disposal

10.4 Total net assets

10.5 Nature of business

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Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 24 October 2019 (Director/Company secretary)

Print name: Charly Duffy

Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been

financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

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ASX: LVH MARKET RELEASE LiveHire September Quarterly ... · 10/24/2019 · LiveHire is an award-winning2 talent acquisition & engagement platform that revolutionises the candidate